ACROSS THE NATION.

Hike in cigarette tax urged to deter tobacco growing

May 13, 2001|By Items compiled from Tribune news services.

WASHINGTON, D.C. — The federal tax on cigarettes should rise by 17 cents a pack to pay tobacco farmers to stop growing the crop and the government should have the power to regulate tobacco products, a presidential commission recommends.

The White House said President Bush would study the report, to be released Monday in North Carolina and Kentucky.

The report also will go to Congress.

Created by President Bill Clinton, the 10-member commission of farmers, health advocates and economic experts explored ways to protect the public from smoking hazards and give tobacco growers an incentive to switch crops.

The 17-cent increase in the current 34-cent per pack tax would raise $3.4 billion annually for the buyout of the tobacco-quota system, based on estimated yearly cigarette sales of 20.2 billion packs, according to the report.